[Congressional Record Volume 172, Number 48 (Tuesday, March 17, 2026)]
[Senate]
[Pages S1111-S1112]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4411. Mr. WHITEHOUSE submitted an amendment intended to be
proposed by him to the bill S. 1383, to establish the Veterans Advisory
Committee on Equal Access, and for other purposes; which was ordered to
lie on the table; as follows:
In lieu of the matter proposed to be inserted, insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Medicare and Social Security
Fair Share Act''.
SEC. 2. MODIFICATION OF PAYROLL TAXES.
(a) Wage Base for Taxes Funding Social Security.--
(1) In general.--Paragraph (1) of section 3121(a) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(1) in the case of taxes imposed by sections 3101(a) and
3111(a), for any calendar year in which the contribution and
benefit base (as determined under section 230 of the Social
Security Act) is less than $400,000, so much of the
remuneration (other than remuneration referred to in the
succeeding paragraphs of this subsection) with respect to
employment that has been paid to an individual by an employer
during the calendar year as exceeds such contribution and
benefit base but does not exceed $400,000;''.
(2) Conforming amendments.--
(A) Successor employers.--Section 3121 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new subsection:
``(aa) Special Rules for Successor Employers.--For purposes
of subsection (a)(1), if an employer (hereinafter referred to
as successor employer) during any calendar year acquires
substantially all the property used in a trade or business of
another employer (hereinafter referred to as a predecessor),
or used in a separate unit of a trade or business of a
predecessor, and immediately after the acquisition employs in
his trade or business an individual who immediately prior to
the acquisition was employed in the trade or business of such
predecessor, then, for the purpose of determining the amount
of remuneration paid by the successor employer under such
subsection, any remuneration (other than remuneration
referred to in the paragraphs succeeding paragraph (1) of
subsection (a)) with respect to employment paid (or
considered under this subsection as having been paid) to such
individual by such predecessor during such calendar year and
prior to such acquisition shall be considered as having been
paid by such successor employer.''.
(B) Application to railroad retirement taxes.--Clause (i)
of section 3231(e)(2)(A) of such Code is amended to read as
follows:
``(i) In general.--For any calendar year in which the
applicable base is less than $400,000, the term
`compensation' does not include so much of the remuneration
paid during any calendar year to an individual by an employer
for services rendered as an employee to such employer as
exceeds the applicable base but does not exceed $400,000.''.
(b) Further Additional Hospital Insurance Tax on Very High
Income Taxpayers.--
(1) In general.--Section 3101(b) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(3) Further additional tax.--In addition to the tax
imposed by paragraphs (1) and (2) and the preceding
subsection, there is hereby imposed on every taxpayer (other
than a corporation, estate, or trust) a tax equal to 1.2
percent of wages which are received with respect to
employment (as defined in section 3121(b)) during the taxable
year which are in excess of--
``(A) in the case of a joint return, $500,000,
``(B) in the case of a married taxpayer (as defined in
section 7703) filing a separate return, \1/2\ of the dollar
amount determined under subparagraph (A), and
``(C) in any other case, $400,000.''.
(2) Collection of tax.--Section 3102 of such Code is
amended by adding at the end the following new subsection:
``(g) Special Rules for Further Additional Tax.--
``(1) In general.--In the case of any tax imposed by
section 3101(b)(3), subsection (a) shall only apply to the
extent to which the taxpayer receives wages from the employer
in excess of $400,000, and the employer may disregard the
amount of wages received by such taxpayer's spouse.
``(2) Collection of amounts not withheld.--To the extent
that the amount of any tax imposed by section 3101(b)(3) is
not collected by the employer, such tax shall be paid by the
employee.
``(3) Tax paid by recipient.--If an employer, in violation
of this chapter, fails to deduct and withhold the tax imposed
by section 3101(b)(3) and thereafter the tax is paid by the
employee, the tax so required to be deducted and withheld
shall not be collected from the employer, but this paragraph
shall in no case relieve the employer from liability for any
penalties or additions to tax otherwise applicable in respect
of such failure to deduct and withhold.''.
(c) Effective Date.--The amendments made by this section
shall apply to remuneration paid, and taxable years
beginning, on or after January 1 of the first calendar year
that begins after the date of enactment of this Act.
SEC. 3. MODIFICATION OF TAXES ON SELF-EMPLOYMENT INCOME.
(a) Tax on Net Earnings From Self-Employment up to
Contribution and Benefit Base and More Than $400,000.--
Paragraph (1) of section 1402(b) of the Internal Revenue Code
of 1986 is amended to read as follows:
``(1) in the case of the tax imposed by section 1401(a) for
any taxable year beginning in a calendar year in which the
contribution and benefit base (as determined under section
230 of the Social Security Act) is less than $400,000, the
excess (if any) of--
``(A) so much of the net earnings from self-employment
which is in excess of--
``(i) an amount equal to the contribution and benefit base
(as determined under section 230 of the Social Security Act)
which is effective for the calendar year in which such
taxable year begins, reduced (but not below zero) by
``(ii) the amount of the wages paid to such individual
during such taxable year, over
``(B) the sum of--
``(i) the excess (if any) of--
``(I) the net earnings from self-employment reduced by the
excess (if any) of subparagraph (A)(i) over subparagraph
(A)(ii), over
``(II) $400,000, reduced by such contribution and benefit
base, plus
``(ii) the amount of the wages paid to such individual
during such taxable year in excess of such contribution and
benefit base and not in excess of $400,000; or''.
(b) Further Additional Hospital Insurance Tax on Very High
Income Taxpayers.--
(1) In general.--Section 1401(b) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(3) Further additional tax.--
``(A) In general.--In addition to the tax imposed by
paragraphs (1) and (2) and the preceding subsection, there is
hereby imposed on every taxpayer (other than a corporation,
estate, or trust) for each taxable year a tax equal to 1.2
percent of the self-employment income for such taxable year
which is in excess of--
``(i) in the case of a joint return, $500,000,
``(ii) in the case of a married taxpayer (as defined in
section 7703) filing a separate return, \1/2\ of the dollar
amount determined under subparagraph (A), and
``(iii) in any other case, $400,000.
``(B) Coordination with fica.--The amounts under clause
(i), (ii), or (iii) (whichever is applicable) of subparagraph
(A) shall be reduced (but not below zero) by the amount of
wages taken into account in determining the tax imposed under
section 3101(b)(3) with respect to the taxpayer.''.
(2) No deduction for further additional tax.--
(A) In general.--Section 164(f) of such Code is amended by
striking ``section 1401(b)(2)'' and inserting ``paragraphs
(2) and (3) of section 1401(b)''.
(B) Deduction for net earnings from self-employment.--
Section 1402(a)(12)(B) of such Code is amended by striking
``the rate imposed under paragraph (2) of section 1401(b)''
and inserting ``the rates imposed under paragraphs (2) and
(3) of section 1401(b)''.
(3) Technical amendment.--Section 1401(b)(2)(B) of such
Code is amended by striking ``section 3121(b)(2)'' and
inserting ``section 3101(b)(2)''.
(c) Effective Date.--The amendments made by this section
shall apply to net earnings from self-employment derived, and
taxable years beginning, on or after January 1 of the first
calendar year that begins after the date of enactment of this
Act.
[[Page S1112]]
SEC. 4. TAXES ON UNEARNED INCOME.
(a) Modifications to Tax on Net Investment Income.--
(1) In general.--Section 1411 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(f) Additional Amount for Certain High Income
Individuals.--
``(1) Inclusion of specified net income.--
``(A) In general.--In the case of any individual whose
modified adjusted gross income for the taxable year exceeds
the high income threshold amount, subsection (a)(1) shall be
applied by substituting `the greater of specified net income
or net investment income' for `net investment income' in
subparagraph (A) thereof.
``(B) Phase-in of increase.--The increase in the tax
imposed under subsection (a)(1) by reason of the application
of subparagraph (A) (determined before application of
paragraph (2)) shall not exceed the amount which bears the
same ratio to the amount of such increase (determined without
regard to this paragraph) as--
``(i) the excess described in subparagraph (A), bears to
``(ii) $100,000 (\1/2\ such amount in the case of a married
taxpayer (as defined in section 7703) filing a separate
return).
``(2) Additional rate bracket.--In the case of any
individual whose modified adjusted gross income for the
taxable year exceeds the high income threshold amount, the
amount of tax imposed under subsection (a)(1) shall be
increased by an amount equal to 13.6 percent of the lesser
of--
``(A) the greater of the specified net income or net
investment income for the taxable year, or
``(B) the excess (if any) of--
``(i) the modified adjusted gross income for such taxable
year, over
``(ii) the high income threshold amount.
``(3) Definitions.--
``(A) High income threshold amount.--For purposes of this
subsection, the term `high income threshold amount' means--
``(i) except as provided in clause (ii) or (iii), $400,000,
``(ii) in the case of a taxpayer making a joint return
under section 6013 or a surviving spouse (as defined in
section 2(a)), $500,000, and
``(iii) in the case of a married taxpayer (as defined in
section 7703) filing a separate return, \1/2\ of the dollar
amount determined under clause (ii).
``(B) Specified net income.--For purposes of this section,
the term `specified net income' means net investment income
determined--
``(i) without regard to the phrase `other than such income
which is derived in the ordinary course of a trade or
business not described in paragraph (2),' in subsection
(c)(1)(A)(i),
``(ii) without regard to the phrase `described in paragraph
(2)' in subsection (c)(1)(A)(ii),
``(iii) without regard to the phrase `other than property
held in a trade or business not described in paragraph (2)'
in subsection (c)(1)(A)(iii),
``(iv) without regard to paragraphs (2), (3), and (4) of
subsection (c), and
``(v) by treating paragraphs (5) and (6) of section 469(c)
(determined without regard to the phrase `To the extent
provided in regulations,' in such paragraph (6)) as applying
for purposes of subsection (c) of this section.''.
(b) Application to Trusts and Estates.--Section 1411(a)(2)
of the Internal Revenue Code of 1986 is amended--
(1) by striking ``3.8 percent'' and inserting ``17.4
percent'', and
(2) in subparagraph (A) thereof, by striking
``undistributed net investment income'' and inserting ``the
greater of undistributed specified net income or
undistributed net investment income''.
(c) Clarifications With Respect to Determination of Net
Investment Income.--
(1) Certain exceptions.--Section 1411(c)(6) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(6) Special rules.--Net investment income shall not
include--
``(A) any item taken into account in determining self-
employment income for such taxable year on which a tax is
imposed by section 1401(b),
``(B) wages received with respect to employment on which a
tax is imposed under section 3101(b) (determined without
regard to section 3101(c)) or 3201(a) (including amounts
taken into account under section 3121(v)(2)), and
``(C) wages received from the performance of services
earned outside the United States for a foreign employer.''.
(2) Net operating losses not taken into account.--Section
1411(c)(1)(B) of such Code is amended by inserting ``(other
than section 172)'' after ``this subtitle''.
(3) Inclusion of certain foreign income.--
(A) In general.--Section 1411(c)(1)(A) of such Code is
amended by striking ``and'' at the end of clause (ii), by
striking ``over'' at the end of clause (iii) and inserting
``and'', and by adding at the end the following new clause:
``(iv) any amount includible in gross income under section
951, 951A, 1293, or 1296, over''.
(B) Proper treatment of certain previously taxed earnings
and profits.--Section 1411(c) of such Code is amended by
adding at the end the following new paragraph:
``(7) Certain earnings and profits of foreign
corporations.--
``(A) In general.--Except as otherwise provided by the
Secretary, a distribution of earnings and profits that is not
treated as a dividend for purposes of chapter 1 by reason of
section 959(d) or section 1293(c) shall not be treated as a
dividend for purposes of this section.
``(B) Regulations and other guidance.--The Secretary shall
issue regulations or other guidance providing for the
treatment of distributions by a foreign corporation after
December 31, 2025, of earnings and profits of such foreign
corporation which accrued before such date, but which have
not been previously subject to tax under this section.''.
(d) Transfers of Revenues to Old-Age and Survivors,
Disability Insurance, and Federal Hospital Insurance Trust
Funds.--
(1) Federal old-age and survivors trust fund.--
(A) In general.--Section 201(a) of the Social Security Act
(42 U.S.C. 401(a)) is amended--
(i) by striking ``100 per centum of'',
(ii) by inserting ``100 percent of'' before ``the taxes''
each place it appears in paragraphs (1), (2), (3), and (4),
and
(iii) by striking ``and'' at the end of paragraph (3), by
striking the period at the end of paragraph (4) and inserting
``; and'', and by inserting after paragraph (4) the following
new paragraph:
``(5) 71.3 percent of the taxes imposed by section 1411 of
the Internal Revenue Code of 1986 for any taxable year
beginning after December 31, 2025, as determined by the
Secretary of the Treasury or the Secretary's delegate based
on tax returns under subtitle F of such Code, less the
amounts specified in paragraph (3) of subsection (b).''.
(B) Conforming amendment.--The fourth sentence of section
201(a) of such Act (42 U.S.C. 401(a)) is amended by striking
``clauses (3) and (4)'' each place it appears and inserting
``paragraphs (3), (4), and (5)''.
(2) Federal disability insurance trust fund.--Section
201(b) of the Social Security Act (42 U.S.C. 401(b)) is
amended--
(A) by striking ``100 per centum of'', and
(B) by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``; and'', and by inserting after paragraph (2) the following
new paragraph:
``(3) 10.3 percent of the taxes imposed by section 1411 of
the Internal Revenue Code of 1986 for any taxable year
beginning after December 31, 2025, as determined by the
Secretary of the Treasury or the Secretary's delegate based
on tax returns under subtitle F of such Code.''.
(3) Federal hospital insurance trust fund.--Section 1817(a)
of the Social Security Act (42 U.S.C. 1395i(a)) is amended--
(A) by striking ``100 per centum of'',
(B) by inserting ``100 percent of'' before ``the taxes''
each place it appears in paragraphs (1) and (2), and
(C) by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and inserting
``; and'', and by inserting after paragraph (2) the following
new paragraph:
``(3) 28.7 percent of the taxes imposed by section 1411 of
the Internal Revenue Code of 1986 for any taxable year
beginning after December 31, 2025, as determined by the
Secretary of the Treasury or the Secretary's delegate based
on tax returns under subtitle F of such Code.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2025.
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